Logistics group John Menzies reaped the benefit of favourable currency movements which helped to lift group reported profits nearly nine per cent to £19.8 million.

The Edinburgh-based group said underlying profit before tax for the 2016 year to December rose 30 per cent to £49.7 million and rose 17 per cent on a constant currency basis to £44.8 million.

Turnover rose to £2.07 billion, up from £1.99 billion in 2015, and was up 0.7 per cent on a constant currency basis.

Underlying profit from Menzies Aviation, which has the bulk of its operations outside the UK, rose 48 per cent to £34.2 million (2015: £23.1 million) and by 27 per cent on a constant currency basis.

Menzies Distribution was “broadly in line” with the previous year, with underlying profit down 1.5 per cent to £24.7 million “despite increased cost pressures”.

Menzies booked £18.4 million in exceptional items for the year (2015: £10.5 million), comprising £8.8 million in transaction costs liked to its £153 million takeover of BBA's aviation refueller business ASIG, and £9.6 million in asset write downs in the Netherlands cargo business due to lower freighter volumes in Amsterdam flown by Martinair.

The one-offs pushed operating profit on a constant currency basis down 12 per cent to £22.7 million, though positive currency movements served to lift reported operating profit almost seven per cent to £27.6 million.

Positive currency movements also lifted reported pre-tax profits nearly nine per cent, though on a constant currency basis pre-tax profits were down 18 per cent to £14.9 million.

Post year-end Menzies completed the “transformational ASIG acquisition which the group said will strengthen its position as a “leading player in the global aviation services market”.

“We successfully completed the acquisition of ASIG on 1 February 2017 and this brings with it exciting new product lines that provide us with great opportunities to strengthen our business and to expand our product offering across our network.”

Shares in John Menzies dipped three per cent on opening on Wednesday before recovering and were trading down 0.3 per cent in the morning session.